Stephen Timperley of Deloitte’s’Motor Industry Services explained in a recent AutoTalk article that increased sales volumes through the back end of 2014 did not result in increased profits (except possibly in the prestige market) for dealerships, and that some of the reasons for this appear to be structural and therefore do not have quick solutions.
F&I performance, however, is in the direct and immediate control of the business and it certainly seems to us that those dealerships that are not maximising this potential profit centre are missing out.
There is a huge and variable range of business circumstances that impact on this, but comparing (our) data from across the industry we see clients for whom F&I contributes over 50% of total dealership net profit, and the average contribution in our dealer community is consistently coming in at 20-30%. Yes, that is contribution to net profit. Continue reading “Opinion: F&I contribution more important than ever” »